Naslov
The role of stakeholder heterogeneity in the corporate social responsibility–corporate financial performance relationship

Autori
Cadez, Simon ; Galant, Adriana

Izvornik
Društvena istraživanja: časopis za opća društvena pitanja (1330-0288) 32 (2023), 1; 115-136

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
Corporate social responsibility ; financial performance ; stakeholders ; stakeholder pressures ; PLS-SEM ; Croatia

Sažetak
Empirical evidence on the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) remains contentious in terms of both its direction and causality. The presented study explores the intervening roles of stakeholder heterogeneity and the time dimension in the CSR–CFP relationship. We posit that the social impact hypothesis (i.e. a positive relationship between CSR and future CFP) applies more to CSR activities towards market stakeholders (employees, customers, competitors) whereas the trade-off hypothesis (i.e. a negative relationship between CSR and future CFP) applies more valid to CSR activities towards non-market stakeholders (NGOs, society, natural environment). A conceptual model is advanced and analysed using a sample of 115 Croatian companies. Countering expectations, a positive relationship is observed for all stakeholder groups considered (market and non-market), showing that CSR is a coherent construct regardless of the stakeholder group being studied. The key managerial implication is that socially responsible action is also in a company’s economic interest.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA